The best books about forex trading
All experienced and professional traders began their journey with training.
Of course, in view of the developed information space, there are many sources of information, various articles and video lessons, but as practice shows, it is books that have the best effect on a trader during his training.
Each book is a source of knowledge, and if we talk about books on stock trading, then these are also stories of successful people who were able to identify the main thing from a bunch of unnecessary information.
It is worth noting that the effectiveness of a particular market analysis method is not spoken of by fabulous words, but by real successful traders who have put all their experience on paper.
On our website in the Forex Books you can download a simply gorgeous set of books. However, in order not to create a mess in your head, we decided to make mini recommendations on books, reading which will bring you great benefit and teach you the basics of trading.
What is CFD trading?
CFDs are considered to be a relatively new trading instrument that is gaining increasing
popularity among traders and investors.
If five years ago we could all find literally a couple of such assets in our MT4 trading terminal, now the range of different instruments is so large that some Forex brokers began to provide separate types of accounts for CFD trading, when you open which you will receive a full range of services when trading these data asset.
So what is CFD? A CFD is a special type of financial asset, which is a contract for the difference between the opening and closing prices of a transaction.
In generally understandable language, when trading CFDs, you and I enter into a kind of contract between each other or a broker, upon the closure of which we receive the difference in price between the opening and closing of the transaction in the form of profit or loss, depending on where the price of the asset goes.
Forex informers.
When trading Forex, a trader needs a lot of information; you can get it using special online
informers that dynamically display data.
Some traders don’t even realize that the list of informers is far from limited to currency quotes; in practice, there are many other, no less useful tools.
You can get acquainted with some of them on this website:
Currency quotes - how could we do without them? This informer indicates the purchase and sale price of a currency by a broker, the change in price relative to the previous quote, as well as the size of the spread.
Free SMS signals forex
Trading using third-party signals is currently practically the only opportunity
for a beginner to make money in Forex.
There are several options for such services - copying transactions, services on broker websites and SMS signals. The simplest and most effective way to find entry points into the market are SMS messages; when you connect to them, you will quickly learn about the opportunity to make a successful transaction.
Free SMS signals for Forex - this is the highest speed of opening transactions and, as a result, the greatest profit, the ability to open transactions directly on the phone after installing a mobile terminal, the clarity of the recommendations provided.
The message contains a recommendation indicating the currency pair, the direction of opening a position and the point of direct entry into the market.
Personal account on Forex.
After registering with a broker, you are taken to the trader’s account. Some people think that here you can only replenish your account or,
on the contrary, withdraw profits, but in practice, the trader’s account also has a lot of other functions.
Depending on the brokerage company, you can find everything here - from statistical data to free advisors or forecasts.
Let's figure out what interesting things can be found in the trader's office and how useful these functions are.
Let's start with the most common:
Trading in Russia.
If citizens of the USSR could become acquainted with trading only through foreign films, then residents of Russia can already
become traders on their own.
The era of exchange trading began to actively develop after the collapse of the Soviet Union, although from the beginning trading was the domain of a limited circle of professionals accredited at the exchange.
With the advent of the Internet, a radical change in the situation occurred, making trading on the stock exchange accessible to almost anyone; in addition, such a concept as margin trading began to be used more actively, which significantly increased the earnings and risks of traders.
Currently, trading in Russia is carried out in several directions.
Depth of market or market depth.
Very often in various publications one comes across such concepts as depth of market or market depth; in fact, these are synonyms
characterizing the same moment.
Depth of Market - represents a table of data that indicates currently placed exchange orders.
The table has several columns - volume, contract price and trade. The data helps to assess the actual depth of the market and the real volume of transactions in the context of price quotes.
The use and information content of the Depth of Market depends on the specific broker and whether traders' orders are displayed on a real exchange; in the latter case, you can even see your own order if it has a significant volume.
Futures trading on the stock exchange, necessary programs and examples of transactions
Many beginners, as well as experienced players in the foreign exchange market, cannot muster the courage to try themselves with
other instruments, limiting themselves to a narrow set of currency pairs. There are a number of myths around futures trading on the stock exchange, such as that it is very difficult, it is difficult to predict the price, and it is quite difficult to understand them.
Of course, the first thing that scares a newbie away from futures is the name of the symbol, which often does not have any associations with a product or stock, unlike a currency pair, where by looking at the name everything becomes extremely clear.
However, you don’t even think about how much you limit yourself and prevent you from revealing your potential by actually working on heavily forecasted currency pairs like euro/dollar and pound/dollar.
Cost of 1 lot when trading on Forex, simple cost calculation
When working on Forex, there are a lot of different perimeters that need to be calculated before opening a transaction, one of which
is the cost of 1 lot.
Lot cost - the amount of funds in the deposit currency that must be paid when opening a transaction of one lot.
The parameter depends on the currency pair being traded. Calculating the cost of a lot is quite simple, but it should be taken into account that in addition to the trader’s own funds, leverage is also involved in the transaction; the higher it is, the less own funds are needed to secure the operation.
The standard lot size is 100,000 units of the base currency in a currency pair, meaning if a trade is made on EURUSD, the base currency will be the euro.
Free forex trading training.
Learning on your own is always difficult, and when it comes to learning trading, the task becomes much more complicated.
From the huge amount of thematic information, the most important points should be highlighted and the learning process correctly structured.
There are several options for learning how to trade Forex for free; they are a complete replacement for expensive, paid courses or video lessons.
All you have to do is choose the one most suitable for yourself, based on your free time and some other nuances.
Free forex services.
Some traders believe that most of the useful services provided by brokers are
paid, but in practice there is such a thing as “Free Forex services”.
Forex services are a set of various utilities that simplify trading and make it more efficient, and sometimes they simply do your job of conducting analysis and finding entry points into the market.
The group of such services includes signals, the Forex copy system, news feeds, forecasts, analytical reviews, free courses, online seminars.
Forced closing of positions on Forex.
Sometimes when trading Forex, positions are closed not at the initiative of the trader or because stop orders are triggered.
Forced closure is carried out by the broker through whom trading is conducted; usually this option for completing a transaction brings a lot of trouble to the trader.
Therefore, the main task is to prevent such situations from arising; to do this, we will first understand for what reasons the broker can close your orders.
dealing centers usually close their clients’ positions for the following reasons:
American trading session.
This trading time has long been one of the most dynamic; a special revival in the foreign exchange
market is noted when the work of the European and American trading sessions intersects; it is at this time that the volume of transactions and, accordingly, the liquidity of working instruments soar.
The American trading session begins in the evening from 17-00 to 02-00 the next day, Moscow time, at first trading is carried out only on the New York trading floor, but after an hour Chicago also joins it.
The main currency here, as one would expect, is the US dollar, followed only slightly by the euro, followed by the Japanese yen, Canadian dollar and other currencies popular on Forex .
Interesting usefulness for Forex trading
Gradually, Forex trading turns not into an exciting game, but into everyday work, which you want to be simpler
and easier.
The trader's trading terminal and most brokers provide this opportunity thanks to a large number of different services. Using additional features not only makes trading easier.
But it also significantly increases its effectiveness, so it is advisable not to forget about this aspect. The most common options are one-click trading, rebate service, web terminals, news feeds, copying transactions, VPS hosting.
Why are such services needed and what benefits can they bring to those who use them?
All weekends and holidays on Forex when the market is closed
When working on Forex, first of all, you should understand that in addition to weekends (Saturday and Sunday),
there are also holidays on the currency exchange.
Moreover, holidays are not always a closed exchange, it all depends on which holiday and at which trading session the trading is currently taking place.
Since, if in the USA, for example, they celebrate Independence Day and there is no trading in the American session on July 4, then the European and Asian stock exchanges operate normally.
In addition, in recent years, some brokers on Forex weekends allow you to trade cryptocurrencies, providing access to the market 7/24.
It would seem that in such a simple question there are a lot of important nuances that should definitely be paid attention to.
Spread return to the maximum, the best rebate broker on Forex
The concept of a rebate of a paid spread when trading on the Forex currency exchange is familiar to almost any trader; its attractiveness lies in the fact that without additional conditions you can receive a fairly decent reward for your trading.
Spread return allows you to reduce the commission for already completed transactions, and its size depends on the currency pair you choose and trading volumes.
There is currently a Promotion underway, under the terms of which if you open an account with Amarkets, you will be entitled to the maximum spread rebate.
The reward amount ranges from 0.7 points to 2 points.
That is, you will receive from 7 to 20 dollars in return for each lot of transactions performed. For deposits of more than $10,000, it is possible to increase the return of the paid commission by another 35%, that is, from 1 to 2.7 points per lot.
Asian Forex session.
This time is the time when trading platforms such as Tokyo, Hong Kong and
Singapore operate; recently, Australia is increasingly being included in the Asian trading session.
From the list of trading platforms, it immediately becomes clear which currencies are dominant at a given time - the Japanese yen, the Australian dollar, the Hong Kong dollar and, accordingly, the Singapore dollar.
The Asian Forex session starts at 03-00 Moscow time and ends at 13-00, while the end of the Asian trading floor overlaps with the European session, so if you want to trade exclusively in Asia, try to close transactions before 10-00 in the morning.
How to easily calculate the value of a Forex pip, calculator and formula
The cost of one Forex point plays a rather large role when choosing the correct volume of transactions; the trader must accurately understand how stable his position is to the trend and what price surges he can easily withstand.
It is this concept that is the basis of some trading strategies and allows you to set a certain amount of profitability of transactions.
The Forex point is equal to the last digit in the quote of a currency pair, its specific value depends on the volume of the transaction, the calculation is made in the quoted currency in the currency pair.
With a two-digit quote it is 0.01, with a three-digit quote it is 0.001, and with a four-digit quote it is 0.0001, respectively.
Now the most popular five-digit quote, in this case you should also focus on the last digit, as shown in the photo.
Specific examples will help you understand this concept more clearly.
Computer for Forex trading
In order to trade on the foreign exchange exchange with complete comfort, you need a personal computer with Internet access.
Sometimes on the Internet you can find simply unimaginable requirements for this equipment; in practice, everything is much simpler.
For normal operation, a machine with minimal parameters that meet the requirements of the trader’s trading terminal is sufficient; these parameters and some other aspects will be discussed in this article.
First of all, you should pay attention to the minimum system requirements set by one of the most popular MetaTrader4 platforms; you don’t have to buy an overly powerful machine; it’s better to use the saved money for trading.
Minimum computer requirements for trading:
How to replenish a Forex account, profitable and fast replenishment options
One of the questions when trading on the currency exchange is “how to fund a Forex account?”, seemingly such a simple step, sometimes causes a lot of difficulties.
It should be borne in mind that some brokers practice an approach in which withdrawals are possible only in the same way as they were replenished.
There are several easiest ways to top up a Forex trader’s account - with electronic money, bank transfer, from a card account, cryptocurrency or cash at a dealing center office.
When making your choice, be sure to pay attention to the amount of the commission charged, the transfer period, and the ability to choose the payment currency.
Some brokers have a withdrawal commission that can reach 5%, while other brokerage companies allow you to withdraw money completely without commission.
Each of the listed options has its own advantages and disadvantages, which you should pay attention to when choosing it.
Micro Forex or how to trade cent accounts.
Trading on cent accounts has a number of its own characteristics, ranging from the choice of a cent broker to the volume of transactions performed.
This trading option, also called micro forex, is great for a novice trader, as it gives you the opportunity to practice on a real account without risking large sums of money.
It should be noted that, in addition to technical issues, there is some discrimination against traders who work on these accounts, since their orders are executed a little slower and the spread may differ from regular account options.
The main points that we will focus on in this article are the choice of leverage, trading strategy and the volume of transactions.
As well as a number of other nuances that you will encounter when working on micro Forex.
Current forex statistics, volumes, currencies, traders’ earnings
The Forex market is one of the largest platforms where currency trading takes place; Forex statistics say that its daily turnover reaches several trillion dollars.
However, not all currencies are equally popular; preference is given to the American dollar, euro and some other trading instruments.
Trading on the market itself is carried out by several hundred large brokers; they are representatives of thousands of small brokerage companies, which in turn work with individuals called traders.
Forex statistics speak for themselves; from its analysis, you can glean a lot of useful information for use in practical trading, with the main sections being the following points:
European forex session.
It is the most beloved by traders from the CIS countries, this is due to the fact that its operating hours
almost completely coincide with the working day in Russia, Ukraine and neighboring countries.
The European Forex session is a rather interesting time for trading, because most of the currencies popular on the foreign exchange market belong specifically to the countries of the euro zone.
Therefore, it is at this time that important news comes out that causes prices to rise and fall; on the one hand, this is an opportunity to make money, on the other, to quickly lose your deposit.
Dictionary of Forex terms necessary for successful trading
In order to start trading on the currency exchange, you need to know the basic terms of Forex; it is the terminology that will allow you to quickly understand the essence of trading.
A brief dictionary of Forex terms is just a few dozen of the most common terms and concepts that give a general idea of some operations and help you navigate situations that arise.
A decoding of the symbols that are used when trading currencies will be given; they serve to describe basic operations and are used to characterize the state of the account, as well as in some other situations.
In this article I will not burden the reader with a lot of professional words; to decipher them there is a special section of forex terms , all attention will be paid to practical concepts necessary in everyday work on the forex market.
And the Forex dictionary is, so to speak, briefly about the main thing.
Cent Forex and important features of trading on cent accounts
Novice traders think that a large deposit is required to trade Forex, but in practice this is not quite the case; you can start trading with a minimum capital of just $1.
For these purposes, the so-called cent Forex is used, which allows you to check the operation of your own trading strategy or test an automatic advisor.
The main purpose of such accounts is to test strategies, but with the right skills, some even manage to make good money on them.
True, you should not think that cent Forex is always trading with a couple of dollars; very often you can find traders trading there with a deposit of 500 dollars or more.
There are a number of features of working with cent accounts, which is exactly what will be discussed in this article; in addition, I will give a number of recommendations that tell you how to make money here with minimal capital.
Taxes on Forex earnings
Once you have started regularly making money on the foreign exchange market, the question naturally arises: do you need to pay taxes on Forex?
The answer is clear - it is necessary, of course, if your annual income is only a few tens of dollars, not a single tax inspector will bother you, but in the case when the profit is already calculated in thousands of dollars, you should definitely think about taxation.
Moreover, it is better to do this yourself, without waiting for a visit from the tax inspector, who does not always know how to calculate correctly.
You will have to do everything yourself, so it would be a good idea to find out what taxes you have to pay when trading forex and what the procedure for paying them is.
Forex taxes are the taxation of profits received as a result of trading, namely profits, minus overhead costs that contributed to the trading.
Forex opening hours, session schedule, holidays and weekends
The Forex exchange operates 24 hours a day, with the exception of weekends and holidays, and there is some division into trading sessions depending on time zones.
This point should also be taken into account in order to make your trading more successful, since sessions usually characterize market activity for certain currency pairs and have distinctive trading features.
Forex trading hours start at 23:00 GMT (Greenwich Mean Time) on Sunday and end at 22:00 on Friday.
It is GMT that is taken as the basis for all calculations; the difference with Moscow time is +4 hours.
Therefore, you can start trading no earlier than 3:00 Moscow time on Monday, and close all orders no later than 2:00 on Saturday.
Otherwise, your position will roll over to the next week and you will have to pay an additional commission.
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